Tether’s Bold Move
In a surprising yet refreshing turn of events, Tether, the major player in the stablecoin industry, has announced its firm intention to eliminate commercial paper from its U.S.-dollar backed stablecoin, USDT. Forget that hefty $30 billion portfolio of commercial paper they once carried; Tether has whittled that down to a mere $3.7 billion as of today. That’s like going from full-on pizza party size to just a couple of slices!
The Road to Zero
But wait, there’s more! The stablecoin giant has plans to slash its commercial paper exposure even further. By late August 2022, they aim to reduce it to a jaw-dropping $200 million. The ultimate goal? To completely phase out commercial paper holdings by the end of October. Talk about a clean slate!
Setting the Record Straight
Tether has confidently stated, “We hold no Chinese commercial paper as of today.” This is a pointed jab at the controversial claims circulating the community. Allegations have been flying around that Tether’s portfolio is primarily filled with Asian commercial paper. FYI, Tether already shot down these rumors back in June, labeling them as utterly false. Who knew crypto had its fair share of drama?
A Call for Community Trust
The company emphasizes the importance of maintaining a diversified investment portfolio, aiming to minimize risks related to individual issuers. It’s like Tether is throwing a lifeline to its community, signaling a commitment to transparency and reliability. As they put it, their reduction of commercial paper is a friendly gesture to their vast user base.
The Bigger Picture
However, Tether isn’t just fighting off rumors; they also see false reports as a significant threat to the entire cryptocurrency ecosystem. In their latest blog entry, they highlighted that misinformation poses dangers comparable to scams and cyberattacks—definitely not a good look for the industry. It’s become increasingly clear that the fight against disinformation is as crucial as the battles against hacks or fraud. Tether’s technical chief even mentioned that the stablecoin had been the target of a concerted bearish campaign by some hedge funds. Sounds like a wild week in the crypto world!
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